Britain Pledges $2.94 Billion Loan to Ukraine Using Frozen Russian Assets

The UK pledged a new $2.94 billion (£2.26 billion) loan as part of the G7’s Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, which will collectively provide $50 billion to help Ukraine with military, budgetary, and reconstruction efforts, reported British government on October 22.

The loan, which will be repaid through profits from immobilized Russian assets, was announced by Chancellor Rachel Reeves and Defence Secretary John Healey during a visit to Ukrainian personnel undergoing military training in the UK under Operation INTERFLEX.

This operation has trained over 45,000 Ukrainian soldiers and will continue until at least 2025.

The $2.94 billion will go towards Ukraine’s military budget, enabling the purchase of critical equipment like air defense systems and artillery to aid in defense against Russian aggression.

This is in addition to the UK’s existing $3,9 billion (£3 billion) annual military aid commitment, which was reaffirmed by Prime Minister Rishi Sunak.

The UK has already delivered around 400 types of military hardware to Ukraine, including recent supply of 650 Lightweight Multirole Missile systems to strengthen air defenses.

Chancellor of the Exchequer Rachel Reeves, said “Our support for Ukraine and her men and women in their fight for freedom from Putin’s aggression is unwavering and will remain so for as long as it takes.

This new money is in Britain’s national interest because the frontline of our defense — the defense of our democracy and shared values — is in the Ukrainian trenches. A safe and secure Ukraine is a safe and secure United Kingdom.”

Defence Secretary John Healey added that using profits from frozen Russian assets will directly support Ukraine’s defense, turning the tables on Russia’s war efforts, and said that the UK will continue standing with Ukraine for as long as necessary.

Earlier, during a meeting with Ukraine’s President Volodymyr Zelenskyy, US Defense Minister Lloyd Austin announced the allocation of a new military aid package in the amount of $400 million. Here is what it includes.